Legal Question in Business Law in Minnesota

Retention Bonus
I worked for a pharmaceutical company that was sold in May to another Pharmaceutical company. In 2005, I recieved a notice from the origanal pharmaceutical company I would recieve a retention bonus if I stayed with the company until the end of 2007. The statement included a clause if I was let go by the company prior to the end of 2007 I would recieve my retention bonus. When the company sold, the retention bonus was transfered as a part of the new company's purchase agreement contract.
My question is, do I have any legal recourse if the new company does not pay me the retention bonus by January 1 2008? The bonus is to be equal to my 2005 salary.

Asked on 12/12/07, 5:11 pm

1 Answer from Attorneys

Steven Vatndal Law Office of Steven J. Vatndal

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Re: Retention Bonus

Assuming that the 2005 "notice" was a contractual offer (which seems to be the case from your description, but more details are needed to make sure), and assuming that the new company assumed this liability (as you state) and that it wasn't an "asset only" or similar aquisition (which again requires more details to confirm); then "yes", you could sue the new company for breach of contract if you stay through 2007 and the company doesn't pay.

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Answered on 12/12/07, 5:28 pm

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